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The dean of the School of Fine Arts is trying to decide whether to purchase a copy machine to place in the lobby of the

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The dean of the School of Fine Arts is trying to decide whether to purchase a copy machine to place in the lobby of the building. The machine would add to student convenience, but the dean feels compelled to earn an 10 percent return on the investment of funds. Estimates of cash inflows from copy machines that have been placed in other university bulldings indicate that the copy machine would probably produce incremental cash inflows of approximately $17,000 per year. The machine is expected to have a three-year useful life with a zero salvage value. Note: Use appropriate factor(s) from the tables provided. Required a. Use Present Value Appendix PV of $1, to determine the maximum amount of cash the dean should be willing to pay for a copy machine. Note: Round your intermediate calculations and final answer to 2 decimal places. b. Use Present Value Appendix PVA of \$1, to determine the maximum amount of cash the dean should be willing to pay for a copy machine. Note: Round your final answer to 2 decimal places. Rundle Company is considering investing in two new vans that are expected to generate combined cash inflows of $31,000 per year. The vans' combined purchase price is $91,000. The expected life and salvage value of each are five years and $21,100, respectively. Runde has an average cost of capital of 12 percent. (PV of $1 and PVA of $1 ) Note: Use appropriate factor(s) from the tables provided. Required a. Calculate the net present value of the investment opportunity. Note: Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places. b. Indicate whether the investment opportunity is expected to earn a return that is above or below the cost of capital and whether it should be accepted. Present Value of $1 Present Value of an Annuity of $1

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